Credit card provider American Express cuts the perks on some of its cashback
cards so customers must spend thousands to qualify.

Americian Express customers will from next March need to spend at least £4,250 a year to earn any cashback from its older credit card.

Letters have been posted to customers advising that Amex will only pay cashback if more than £25 is accrued over the course of a year.

The new rule, which takes effect on March 1 2014, applies specifically to Platinum Cashback cards issued prior to August 2009. Calculations for The Telegraph shwo this means customers will need to spend £4,250 at current cashback rates, which rangew from 0.5pc to 1.25pc depending on the spend and card.

The changes are the latest blow to shoppers who use cashback cards to cut costs. Capital One withdrew its popular Aspire World card earlier this year and Barclaycard has also withdrawn a cashback card.

Experts said benefits are being reduced to account for EU legislation that will cut card providers' profits by £2.4 billion by capping the fees charged to shops and restaurants on each transaction.

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Will Becker, co-founder of comparison website Totallymoney.com, said: “It is unlikely that American Express will be the last credit card provider to change the terms and conditions on their existing deals, particularly those associated with less profitable customers.

A spokesman for American Express confirmed the details of the changes. Its cards are still some of the most generous, and the company last week announced a 9pc rise in quarterly profits.

The free Platinum Cashback Everyday card pays 5pc cashback for the first three months on up to £2,000 of purchases. After that, cashback is tiered between 0.5pc and 1.25pc, depending on how much is spent.

American Express also offers a Platinum Cashback card which pays 5pc on up to £2,500 of spending for three months, and then a flat 1.25pc thereafter. This card costs £25 a year and so is best for those who spend more than £8,000 every 12 months.

It is worth comparing the different cards on offer, as not all customers will qualify for an American Express card. Card providers are known to be turning down even customers with perfect borrowing records.